With regards to MS dropping the price on the 360 I feel that microsoft has done a good Job. You can see the sale volume world wide for the 360 was very reasonable from the 5th August 2007 until the 30th December 2007
- PS3 4,486,047
- XBOX360 5,829,221
During this period the Xbox360 outsold the PS3 by more than 20%. Sure if MS had dropped the price before christmas the sales now would have been higher, however, the price cut will prove to be a good tool in driving momentum throughout 2008 and their was no real need to reduce their profit over the holiday season.
Secondly MS had to consider the reliability of their product before another price reduction. Engineers have been focused on making the Xbox 360 more reliable. Also they have a more cost effective revision due out shorty.
Thirdly MS had alot of factory refurbished machines which they need to move before introducing the new pricing.
Taking all these points into account, MS will reduce the price within the first 1/2 of 2008, but it would be likely timed to either build momentum when needed, or when there is a shortage of new hit software.
Predictions JAN 08
2008 PS3-19.5M(actual 19.5) XBOX360-23M(actual 27.5) Wii - 37M(actual 45.8M)
End of 2009 PS3-27 25M XBOX360-30 35M Wii - 48 63M (revised DEC 08)
Price Point
Mid 2008 Wii $250 Xbox360$249 Xbox360(HDD)$299 PS3 $399
Mid 2009 Wii $189 Xbox360$199 Xbox360(HDD)$249 PS3 $339
Mid 2010 Wii $ 149 Xbox360$159 Xbox360(HDD)$199 PS3 $289
